April 07, 2026

#hauora: CARERS RUNNING ON EMPTY: MILEAGE BOOST FALLS SHORT AS COSTS SOAR

Dale Husband Posted On April 7, 2026

Dale Husband #hauora: CARERS RUNNING ON EMPTY: MILEAGE BOOST FALLS SHORT AS COSTS SOAR

A temporary increase in mileage rates for home and community support workers is being labelled inadequate and unsustainable, with advocates warning it fails to address the real cost of care and risks pushing more workers out of the sector.

Community advocate Tamara Baddeley says the government’s uplift remains well below what it actually costs workers to run their vehicles, leaving many effectively subsidising essential health services out of their own pockets.

She points to the full range of expenses faced by carers, including fuel, maintenance, insurance and depreciation, arguing that the current per-kilometre rate does not reflect real-world costs. The shortfall, she says, can add up quickly over a week, with workers travelling long distances between clients, often in rural or spread-out communities.

For many, the result is financial strain on top of already low wages.

Baddeley says the temporary nature of the increase is another major concern, warning it does nothing to address long-standing structural issues in the sector. Recruitment and retention challenges are already acute, with evidence of workers reducing their hours, declining shifts or leaving altogether because they can no longer afford to cover transport costs.

She says the situation is also raising safety concerns, as workers delay vehicle maintenance or continue driving older, less reliable cars due to cost pressures.

The impact is being felt by clients as well, with fewer workers available to provide essential in-home support, particularly for the elderly, disabled and those with complex needs.

Baddeley is calling for a more comprehensive approach to funding, including a permanent and realistic mileage rate that reflects actual costs, alongside proper compensation for travel time and other overheads. She says any sustainable solution must recognise the true value of the work and ensure workers are not financially disadvantaged for delivering care.

On the ground, providers, unions and community groups are increasingly vocal, pushing for urgent reform and highlighting the risk of service gaps if action is not taken. Some are already reporting difficulties maintaining coverage, particularly in areas where travel distances are greater.

In the meantime, there are calls for immediate steps to ease pressure, including greater support from employers and local councils, as well as interim measures to ensure workers are not forced to choose between doing their job and covering their own costs.

For Baddeley and others advocating for change, the message is clear: without meaningful, long-term investment, the system will continue to rely on the goodwill of workers who can no longer afford to carry the burden.